Tax Avoidance

It is not fair that whilst British companies have had to pay the full rate of corporation tax on their UK profits, multinational companies have managed to avoid paying their fair share. My own research shows that the amount of "lost" tax for those companies I investigated is in the region of £3billion.

I took the opportunity to raise this with the Chancellor today and urged him to take action to end this discrepancy and help boost British business.

What action is my right hon. Friend taking to close the tax gap and enable British business to complete on a level tax playing field, after the serious failure to modernise or enforce our business tax system over the past decade by the previous Labour Government?

Chancellor:

My hon. Friend has been a powerful advocate for a more competitive business tax system in this country, and we have reduced again the headline rate of corporation tax. That makes it even more of an advantage for companies to headquarter and pay their taxes here, and it is part of what we are doing to win the global race. I congratulate him on the advice and support he gives in this area.